USA Small Cap ETF

The best ETFs for USA Small Cap Stocks

How do I invest in USA Small Cap stocks?

It is well known that companies with smaller market capitalizations generate higher returns over the
long term. However, they also come with higher risks that investors should efficiently manage.
Diversification of investments with ETFs is the safest bet for an independent investor to approach the small cap stocks.

There are essentially three indices available to invest with ETFs
in USA small cap companies. This Investment Guide for USA small cap stocks will help you navigate between the peculiarities
of the Russell 2000®, MSCI USA Small Cap, S&P Small Cap 600 and ETFs tracking them. It will allow you to find the most
suitable small cap USA ETFs for you by ranking them according to your preferences.

Companies ranked by size covering appr. lowest 14% of the free float-adjusted market cap in the US

Companies ranked 1,001 to 3,000 by total market cap in the underlying Russell 3000® Index

Companies with unadjusted market cap of 400 million to 1.8 billion USD

Index weighting

Market cap(free float)

Total market cap

Market cap(free float)

Source: justETF Research; As of 31/03/2017

MSCI USA Small Cap Index

The
MSCI USA Small Cap Index measures the performance of the small cap segment of the
US market. The index represents appr. lowest 14% (by free float market cap of companies)
of the free float-adjusted market capitalization of the US investable market. The
index is based on free float market capitalization.

Selection criteria: Companies ranked by size covering appr. lowest 14% of the free float-adjusted market cap in the US

Index weighted by free float market cap

Russell 2000® Index

The
Russell 2000® Index measures the performance of the small cap segment of the US equity universe.
The Russell 2000® Index is a subset of the Russell 3000® Index. It includes appr. 2,000 of the
smallest securities based on a combination of their market cap and current index membership. The Russell
2000® Index represents appr. 10% of the total market capitalization of the Russell 3000® Index.

Index rebalancing takes place annually, except for the additions due to new IPO, which take place quarterly

Underlying investable index has requirements for inclusion such as minimum market cap,
closing price, free float, location of trading of the majority of a company's shares

Stock selection is based on total market cap

Companies ranked 1001 to 3000 by total market cap in the underlying Russell 3000® Index are included

Index weighted by total market cap

S&P Small Cap 600 Index

The
S&P Small Cap 600 Index includes 600 small cap US stocks from the underlying
S&P 1500® Composite Index. Companies with an unadjusted market cap of 400 million
to 1.8 billion USD are included in the index.

Index is a subset of S&P 1500® Composite Index and covers more than 3% of available US market cap

Index has minimum liquidity, free float and financial viability (positive earnings in the last year and quarter) inclusion criteria

Selection criteria: companies with unadjusted market cap of 400 million to 1.8 billion USD are included

Index weighted by free float market cap

USA Small Cap ETFs in comparison

The most important factors at a glance

When choosing a USA small cap ETF one should consider several other factors in addition
to the methodology of the underlying index and performance of an ETF. For better comparison,
you will find a list of all USA small cap ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Return comparison of all Small Cap ETFs on US equities

The table shows the returns of all USA small cap ETFs in comparison.
All return figures are including dividends as of month end.
Besides the return the reference date on which you conduct the comparison is
important. In order to find the best ETFs, you can also perform a chart comparison.